Bankruptcy News

J.G. Wentworth Company Plan Effective, Summarized

January 25, 2018

J.G. Wentworth Company's Amended Joint Pre-Packaged Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on January 17, 2018. BankruptcyData's detailed Plan Summary notes, "The Valuation Analysis estimates the total enterprise value of Reorganized JGW to be between approximately $160 million and $190 million as of an assumed Effective Date of December 31, 2017. The range of total equity value, which takes into account the total enterprise value less the estimated net debt outstanding as of an assumed Effective Date of December 31, 2017, was estimated to be between approximately $140 million and $170 million." In addition, "The Liquidation Analysis for Reorganized JGW estimates the Cash Available for Distribution to be between $68.0 million and $120.0 million with the Midpoint Est. Recovery to be $94.0 million. The recovery rate to the Term Loan Claims is estimated to be between 15% and 26%. The recovery rates to General Unsecured Claims and TRA Claims are estimated to be zero." The Company, which provides financial solutions, filed for Chapter 11 protection on December 12, 2017, listing more than $4.9 billion in pre-petition assets.